MGE Energy, Inc. Announces Dividend Increase

41 Consecutive Years of Dividend Hikes

Utility companies are known as stodgy, boring investments, but shareholders of MGE Energy, Inc (NASDAQ:MGEE) don’t seem to be complaining.

On Friday, MGE Energy, Inc. (NASDAQ: MGEE) board of directors approved a quarterly cash dividend of $0.3075 per share. This represents a 4.24% increase from the company’s previous quarterly dividend rate of $0.2950 per share. The dividend will be payable on September 15th, 2016 to shareholders of record as of September 1st. (Source: “MGE Energy Increases Dividend for 41st Consecutive Year,” MGE Energy Inc, August 19, 2016.)

MGE Energy is a public utility holding company. Through its subsidiaries, the company produces and distributes electricity and distributes natural gas to customers primarily in Wisconsin. MGE Energy was founded in 1855 and is headquartered in Madison, Wisconsin.

With this dividend increase, MGE Energy has an annual dividend yield of 2.18%. In the past 41 years, the company has raised its dividends every single year. MGE Energy doesn’t have a target range for its dividend payout, but its recent dividend payout ratio has been between 50% and 60%.

“MGE Energy remains committed to building upon its financial strength and providing solid returns to shareholders,” MGE Energy’s Chairman, President, and Chief Executive Officer Gary Wolter wrote in the company’s press release. “Our customer-focused business model has supported payment of dividends to our shareholders for over one hundred years.”

The dividend hike is the latest sign of strength for the utility company. Earlier this month, MGE Energy reported earnings. In the second quarter of 2016, operating income increased 17.3% year-over-year to $28.2 million. Net income came in at $16.2 million, or 47 cents per share, a significant improvement from the $13.5 million, or 39 cents per share earned in the year-ago quarter. (Source: “MGE Energy Reports Second Quarter Earnings,” MGE Energy Inc, August 4, 2016.)

Dear Reader: There is no magic formula to getting rich. Success in investment vehicles with the best prospects for price appreciation can only be achieved through proper and rigorous research and analysis. We are 100% independent in that we are not affiliated with any bank or brokerage house. Information contained herein, while believed to be correct, is not guaranteed as accurate. Warning: Investing often involves high risks and you can lose a lot of money. Please do not invest with money you cannot afford to lose. The opinions in this content are just that, opinions of the authors. We are a publishing company and the opinions, comments, stories, reports, advertisements and articles we publish are for informational and educational purposes only; nothing herein should be considered personalized investment advice. Before you make any investment, check with your investment professional (advisor). We urge our readers to review the financial statements and prospectus of any company they are interested in. We are not responsible for any damages or losses arising from the use of any information herein. Past performance is not a guarantee of future results. All registered trademarks are the property of their respective owners

Please wait...

Sign up to receive our FREE Income Investors newsletter along with our special offers and get our FREE report:

5 Dividend Stocks to Own Forever

This is an entirely free service. No credit card required. You can opt-out at anytime.